So in order to accomplish my goal of saving $20,000 by July 1st, 2020 I started off by breaking down the numbers to see how far I really had to go to make this a reality.
First off I projected out my total savings in my retirement account. I currently save 8% of my salary and my company matches that at 50 cents on the dollar. Assuming a 7% return in the next year I should be able to contribute an additional $8,953.00 towards my savings goal. YIKES!! That still leaves me $11,047.00 short of my goal.
Finding an additional $11k in my budget as a 20-something living in Manhattan sounds absurd right? Especially when you consider I’m bound and determined to continue paying a premium for a larger than average apartment, I still plan on having a social life on the weekend, and I still want to enjoy traveling as much as possible.
I’m bound and determined not to let that number discourage me though. To make my goal seem more achievable I’m going to break down that $11,000 even more into a monthly savings rate of $921.00. Putting this number away into savings each month isn’t going to happen by strictly cutting my costs $921 (I’d have to give up the things I enjoy). And I doubt that I’ll be able to earn an extra $921 per month on the side as well. However, a combination of the two might get me there.
Let’s start with cost cutting though; a look at my budget tracking account (I use mint.com) shows that in the past year I’ve been averaging the following monthly costs for my budget items:
- Cable & Internet: $50.00
- Electric Bill: $45.00
- Water Bill: $30.00
- Rent: $1,980
- Subscription Services: $21.00
- Alcohol & Bars: $340.00
- Restaurants: $448.00
- Gym Membership: $27.00
- Shopping: $85.00
- Public Transportation: $190.00
- Off Budget: $395.00
That Comes to total monthly expenses of $3,611.00!
I’ll be posting on here daily with tips on how I have managed to personally save money as well as ways that I’m earning extra income on the side.
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